Accy Law Ch 37 --Definitions

Front 1

a collective term referring to all of the debtor's legal and equitable interests in property at the time bankruptcy is commenced

Back 1

bankruptcy estate

Front 2

property that, under either federal or state exemption laws, is exempt from seizure and sale for the payment of the debtor's debts.

Back 2

exempt property

Front 3

proceedings can be commenced under chapter 7 liquidation or chapter 11 reorganization against a chapter 7 or 11 debtor, but not against a farmer, church, school, or charitable foundation

Back 3

involuntary bankruptcy

Front 4

case that may be commenced by the filing of a petition in bankruptcy court involving either chapter 7, 11, or 13. the petitioner must be an eligible entity under the chapter evoked

Back 4

voluntary bankruptcy

Front 5

commenced by the filing of a single petition for the individual and her/his spouse in bankruptcy court invoking either chapter 7, 11, or 13, but neither may undertake it without the other's knowledge and consent.

Back 5

joint bankruptcy

Front 6

appointed or elected to be the representative of the bankruptcy estate. required in chapter 7 and 13 proceedings. charged with the administration of the estate. can sue and be sued.

Back 6

trustee

Front 7

a fundamental debtor protection that stops all collection efforts, all harassment, and all foreclosure or other legal proceedings. puts creditors on hold pending an orderly examination of the debtor's and creditor's rights

Back 7

automatic stay

Front 8

a direct, original, two-party contract in which one agrees to keep another harmless form a specific consequence.

Back 8

indemnification

Front 9

A liability on a claim

Back 9

Debt

Front 10

Financial condition of an entity where the debtor is not paying his of her undisputed debts as they come due.

Back 10

Insolvency

Front 11

Straight bankruptcy or liquidation

Back 11

Chapter 7

Front 12

Bankruptcy for Individuals and businesses

Back 12

Chapter 7

Front 13

Involves the collection of the debtor's nonexempt property, the liquidation or sale of such property, and the distribution of the proceeds to the creditors by the trustee.

Back 13

Chapter 7

Front 14

Bankruptcy for governmental entities

Back 14

Chapter 9

Front 15

A municipality that has encountered financial difficulty may work with it's creditors to adjust it's debts

Back 15

Chapter 9

Front 16

Bankruptcy for business reorganization

Back 16

Chapter 11

Front 17

May be used by individuals but it is mainly for businesses to continue to operate, pay its creditors, and generate a return for its stockholders

Back 17

Chapter 11

Front 18

Bankruptcy for individuals with income

Back 18

Chapter 13

Front 19

Individual can maintain nonexempt property while repaying creditors over an extended period of time.

Back 19

Chapter 13

Front 20

Restricts public access to certain personal information contained in a bankruptcy case file

Back 20

Bankruptcy Abuse Prevention & Consumer Protection Act '05

Front 21

Take information from the city or county and calculate the living expenses, then compare to income and debt burden. Must be failed in order to file chapter 7

Back 21

Means test

Front 22

Means test: income available to repay debt =

Back 22

Income
(allowable living expenses)
X 60

Front 23

Filed by the creditor in order to present his/her claim to the bankruptcy court.

Back 23

Proof of claim

Front 24

Made by debtor with intent to delay, hinder, or defraud creditors. Or made without fair consideration by a person who is or will thereby become insolvent.

Back 24

Fraudulent conveyance

Front 25

Third party that promises to pay the creditor if the debtors does not pay.

Back 25

Surety

Front 26

A type or surety who is involved in a contract that is created separately from the primary contract. Results in secondary liability, or conditioned on the default of the debtor. No demand needed to activate their liability. May be activated merely by debtor default.

Back 26

Guarantor

Front 27

The party who owes the ultimate burden of performing the obligation. Owes duty to both creditor and surety

Back 27

Principal debtor

Front 28

2 or more sureties are liable on the same obligation to the same creditor. The obligation is shared by each surety.

Back 28

Co-surety

Front 29

The surety's right to succeed to the rights of the creditor nice the surety has made good on the debtor's obligation. Right to enforce any lien, pledge, or mortgage securing the principal debt to the extent that an excess exists after the creditor has been satisfied.

Back 29

Subrogation

Front 30

A surety brings suit to require the debtor or co-sureties to pay so that he wont be required to satisfy his obligation. Must show that the debtor is wrongfully withholding assets sufficient to satisfy the debt.

Back 30

Exoneration

Front 31

Each co-surety has a right against other co-sureties to the extent they have paid more than their share.

Back 31

Rights to contribution

Front 32

Given to a creditor to ensure payment for work performed and materials furnished in the repair or improvement of REAL property

Back 32

Mechanic's lien

Front 33

Given to a person who has made improvements and added value to another person's PERSONAL property (ex: automobile), as security for payment of services performed.

Back 33

Artisan's lien

Front 34

Carriers and warehousemen are granted possessory liens that allow them to retain possession of goods entrusted to them until payment for shipment or storage charges are paid.

Back 34

Bailee's lien

Front 35

Owners of property may secure payment of rent or hotel charges by a possessory common law lien on the tenant's PERSONAL property located on the leased premises.

Back 35

Landlord's and innkeeper's lien

Front 36

A state or federal government subdivision can obtain to secure payment of delinquent taxes.

Back 36

Tax lien

Front 37

Issued by companies that, for a stated consideration, assume the risk of performance by the bonded party.

Back 37

Surety bonds

Front 38

Releases the debtor from all debts arising or treated as arising before commencement of bankruptcy whether a proof of claim has been filed or allowed

Back 38

Order to discharge

Front 39

Agreement between a debtor and its creditors in which the participating creditors agree to accept an immediate or early payment of a lesser sum in full satisfaction of the debt due them

Back 39

Composition agreement